Gujarat: Fintech hub, tax incentives to attract more players in GIFT IFSC

AHMEDABAD: The

International Financial Services Centre

(IFSC) at

GIFT

City in Gandhinagar is set to attract more players — both global and domestic — with the

Union Budget

on Monday providing government’s support for the development of world-class Fin-Tech (financial technology) hub at the IFSC. The FM also announced a slew of

tax incentives

for the IFSC.

“The development of world-class

fintech hub

at GIFT City will go a long way in promoting and developing fintech start-ups. GIFT City would provide a platform to fintech firms to expand globally,” said Tapan Ray, MD & Group CEO, GIFT City.

Ray further said that the hub will facilitate research, innovation and development of new age skills in fintech, which will help in creating new job opportunities and attract quality talent to GIFT City.

Jaimin Shah, Board Member, Nasscom Foundation said that maximum investment has taken in fintech space in the digital economy. “Apart from attracting fintech players, the establishment of fintech hub will also create a demand as well as resource pool for artificial intelligence (AI), robotic process automation (RPA) and cloud services in the IFSC and Gift City,” Shah said.

“To cater to fintech players, more and more IT services and ancillary companies as well as start-ups will get attracted to the IFSC and GIFT City.

Gujarat

is going to be a fintech hub for India very soon,” Shah added.

According to industry players, the fintech industry in Gujarat will further get impetus as the state government is also planning to come out with a dedicated fintech policy for the state, which will provide additional incentives as well.

The Union Budget also proposed tax incentives to the IFSC, which include tax holiday for capital gains for aircraft leasing companies, tax exemption for aircraft lease rentals paid to foreign lessors, sops for relocating foreign funds in the IFSC. It also allowed tax exemption to the investment division of foreign banks located in IFSC.

“The additional tax holidays to aircraft leasing companies and those relocating foreign funds to IFSC-GIFT along with setting up of a new fintech hub will drive more players to

GIFT IFSC

, boost investor confidence and give an impetus to the GIFT City project,” said V Balasubramaniam, MD & CEO, India INX, which operates an international exchange in the GIFT IFSC.

Agreeing about the tax holiday boost, Ray said that it would help in attracting global players in the Fund business, aircraft leasing & financing business and offshore investment banking sector to set up their base in GIFT IFSC.

“The strong focus on digital covering setting up of a fintech hub at GFIT City, seen in sync with moves to enhance digital payments and use of artificial intelligence and machine learning etc in governance, will give a fillip to creation of Digital India,” said Niranjan Hiranandani, national president,

National Real Estate Development Council

(NAREDCO).